AER
Business & Finance abbreviation · Personal Finance
| Stands for | Annual equivalent rate |
|---|---|
| Categories | Business & Finance |
AER stands for Annual equivalent rate, a personal finance abbreviation.
UK savings figure showing the interest an account would pay over a year if interest were compounded and left in place, so products that pay monthly, quarterly or annually can be compared. Banks display it alongside the gross rate.
Example: The easy-access saver pays 4.5% AER, variable, with interest paid monthly.
Usage notes
The British counterpart of the US APY. For borrowing, UK lenders quote APR, or APRC on mortgages, instead. A fixed-rate bond may show a gross rate that differs slightly from its AER depending on how often interest is paid.
Related abbreviations
More personal finance abbreviations
- 401(a) – Qualified retirement plan (Internal Revenue Code section 401(a))
- 401(k) – Employer-sponsored retirement savings plan (Internal Revenue Code…
- 403(b) – Tax-sheltered annuity plan (Internal Revenue Code section 403(b))
- 457(b) – Deferred compensation plan (Internal Revenue Code section 457(b))
- 529 – Qualified tuition program (Internal Revenue Code section 529)
- ABLE – Achieving a Better Life Experience account
- APR – Annual percentage rate
- APRC – Annual percentage rate of charge
- APY – Annual percentage yield
- AU – Authorized user
- BT – Balance transfer
- CIBIL – Credit Information Bureau (India) Limited